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Investor Education

Keeping on Track: Nearing Retirement

With five to ten years until retirement, it’s time to evaluate your savings to date. You want to feel comfortable that you have adequately prepared for the type of retirement you want. However, it can be difficult to feel confident with your retirement plan if you are faced with insufficient retirement funds. This could result from a variety of situations, such as poor planning and saving, health concerns and high medical expenses, or financial obligations of being part of the Sandwich Generation (simultaneously caring for children and an elderly loved one). Use this time to save and invest additional funds that might help compensate for any gaps in providing for your retirement needs.

Some financial considerations for this phase of your life

  • Review your current budget and evaluate your investment strategy. Are there adjustments that need to be made in your portfolio to help you meet your retirement goals?
  • Consider what you might do if you were laid off from your job or presented with early retirement options. There are times when some employers encourage early retirement of more experienced workers due to higher levels of salary payments and the assumed increase in health benefit claims.
  • Explore the possibility of part-time or alternative employment options during retirement in order to supplement your retirement savings. Plan ahead by participating in a training program or taking a college course to learn a new technology to assist in this process.

Take action and face your retirement with confidence

  • Review your investment portfolio and assets to address your changing tolerance for risk.
  • Anticipate tax implications of retiring.
  • Revisit your retirement plan and expectations for retirement lifestyle and life expectancy. It is very possible that if you retire at 60, you could live another 30 years or more.
  • Know how to protect yourself from investment fraud.

Getting Closer to Retirement action guide

The Investor Protection Institute and Kiplinger’s created this 6-step action guide for adults ages 55-70. Use this guide to help boost the longevity of your nest egg, determine your guaranteed retirement income, and preserve your savings.